Commissioners approve $112.2 million budget for FY 2013-14

Published: Monday, June 24, 2013 at 11:38 a.m.

Last Modified: Monday, June 24, 2013 at 11:38 a.m.

Agreeing to disagree with some aspects of it, county commissioners unanimously passed a $112.2 million budget Monday for the fiscal year that begins July 1.

The budget keeps property taxes level while fully funding public schools and giving county employees a 2.5 percent cost-of-living raise.

The board approved only one last-minute change: adding $1,710 for dues in a national association of counties. In total, commissioners added roughly $2.3 million in spending to County Manager Steve Wyatt's proposed "base" budget of $109.8 million and pulled $6.72 million from savings to help cover expenses.

Commissioners fully funded the public schools' request of $22 million, including $1 million for capital projects to improve school safety and upgrade facilities. They gave the Sheriff's Office $13.5 million, including funds for two new school resource officers, two new dispatchers and a crime analyst position.

The county's Emergency Medical Services got $4.45 million, including funds to create a new "peak-time" ambulance crew next to Pardee Hospital, its first serious boost in manpower in six years. The Henderson County Rescue Squad also received $100,000 to expand shift coverage and lift pay for part-time employees.

"I think this is a good budget," said Commissioner Larry Young, who made the motion to approve it. "There's a few things that maybe I would have done different. But overall, I think the budget is well laid-out by the county manager and his staff."

Vice Chairman Tommy Thompson echoed that sentiment, saying there are aspects of the budget he didn't totally agree with. But he added, "For the welfare and benefit of all of Henderson County and the operations of everything that's going on, I have no problems and I'm ready to vote the budget up, Mr. Chairman."

Chairman Charlie Messer praised Wyatt and Budget Analyst Amy Brantley for their hard work preparing the budget, calling it "a tremendous job." He asked the board to add $1,710 so the county could join the National Association of Counties.

Henderson County is one of only three counties in the state not currently a member of NACo, Messer said, and membership is important in light of numerous changes to health care at the federal level. He added that a CVS Caremark card provided to member counties can save residents money on their prescriptions.

Commissioner Grady Hawkins supported the budget, even though it didn't include a 1.36-cent property tax reduction he had pushed with Young's help. He urged fellow board members to revisit their policy of keeping a 12 percent fund balance — 4 percent more than required by state law — after an audit is performed in the fall.

"Is 12 percent enough, is it not enough, and what do you do with the amount of money you have over 12 percent — what's your policy on that?" Hawkins asked, expressing his concern that excess savings can prompt unnecessary spending.

Between fiscal years 2004-05 and 2011-12, Hawkins said, the board appropriated almost $15 million out of its reserves to balance those budgets. Yet none of that money was actually spent during those budget cycles, he said, because revenues exceeded expectations and previous boards kept spending in check.

"So as we get ready to pass our budget, I want to keep those numbers in mind," Hawkins said.

Commissioner Mike Edney asked Young to consider amending his motion to grant Board of Education members more compensation. Given the time they put in, Edney suggested the board raise the pay of regular school board members from $2,800 to $4,000 and the chairman's pay from $3,500 to $5,000.

"We did that two or three years ago," replied Young. "But we ask them every year about that. And the chairman of the board and the board members say they don't want it raised. They want to keep it the level it is."

The budget approved Monday is actually closer to $111.9 million because $307,728 for Cane Creek Water and Sewer District workers was added back into the general fund. That money was supposed to transfer to the Metropolitan Sewerage District under a state law passed last month that consolidates public utilities in Henderson and Buncombe counties.

But the city of Asheville has sued to block its implementation. While Henderson County is not a party to that lawsuit now, County Attorney Russ Burrell told commissioners "the state could choose to bring us in." Given the uncertainty, Brantley said county staff added the Cane Creek funds back into the general fund until the case is resolved.

Wyatt said the county is projecting revenues for fiscal year 2014-15, which begins July 1, 2014, at about $106 million, with $6.76 million left in reserves right now. Barring legislative changes, he said that will give commissioners roughly the same budget next fiscal year as this year, around $112 million.

"The plan, as you see, is doable," Wyatt said. "It will be tight. But for the next two years, we believe we can manage up until the point where you have your next reevaluation and then we'll have this conversation all over again based on new tax values."

<p>Agreeing to disagree with some aspects of it, county commissioners unanimously passed a $112.2 million budget Monday for the fiscal year that begins July 1. </p><p>The budget keeps property taxes level while fully funding public schools and giving county employees a 2.5 percent cost-of-living raise.</p><p>The board approved only one last-minute change: adding $1,710 for dues in a national association of counties. In total, commissioners added roughly $2.3 million in spending to County Manager Steve Wyatt's proposed "base" budget of $109.8 million and pulled $6.72 million from savings to help cover expenses.</p><p>Commissioners fully funded the public schools' request of $22 million, including $1 million for capital projects to improve school safety and upgrade facilities. They gave the Sheriff's Office $13.5 million, including funds for two new school resource officers, two new dispatchers and a crime analyst position.</p><p>The county's Emergency Medical Services got $4.45 million, including funds to create a new "peak-time" ambulance crew next to Pardee Hospital, its first serious boost in manpower in six years. The Henderson County Rescue Squad also received $100,000 to expand shift coverage and lift pay for part-time employees.</p><p>"I think this is a good budget," said Commissioner Larry Young, who made the motion to approve it. "There's a few things that maybe I would have done different. But overall, I think the budget is well laid-out by the county manager and his staff."</p><p>Vice Chairman Tommy Thompson echoed that sentiment, saying there are aspects of the budget he didn't totally agree with. But he added, "For the welfare and benefit of all of Henderson County and the operations of everything that's going on, I have no problems and I'm ready to vote the budget up, Mr. Chairman."</p><p>Chairman Charlie Messer praised Wyatt and Budget Analyst Amy Brantley for their hard work preparing the budget, calling it "a tremendous job." He asked the board to add $1,710 so the county could join the National Association of Counties. </p><p>Henderson County is one of only three counties in the state not currently a member of NACo, Messer said, and membership is important in light of numerous changes to health care at the federal level. He added that a CVS Caremark card provided to member counties can save residents money on their prescriptions.</p><p>Commissioner Grady Hawkins supported the budget, even though it didn't include a 1.36-cent property tax reduction he had pushed with Young's help. He urged fellow board members to revisit their policy of keeping a 12 percent fund balance — 4 percent more than required by state law — after an audit is performed in the fall.</p><p>"Is 12 percent enough, is it not enough, and what do you do with the amount of money you have over 12 percent — what's your policy on that?" Hawkins asked, expressing his concern that excess savings can prompt unnecessary spending. </p><p>Between fiscal years 2004-05 and 2011-12, Hawkins said, the board appropriated almost $15 million out of its reserves to balance those budgets. Yet none of that money was actually spent during those budget cycles, he said, because revenues exceeded expectations and previous boards kept spending in check.</p><p>"So as we get ready to pass our budget, I want to keep those numbers in mind," Hawkins said.</p><p>Commissioner Mike Edney asked Young to consider amending his motion to grant Board of Education members more compensation. Given the time they put in, Edney suggested the board raise the pay of regular school board members from $2,800 to $4,000 and the chairman's pay from $3,500 to $5,000.</p><p>"We did that two or three years ago," replied Young. "But we ask them every year about that. And the chairman of the board and the board members say they don't want it raised. They want to keep it the level it is." </p><p>The budget approved Monday is actually closer to $111.9 million because $307,728 for Cane Creek Water and Sewer District workers was added back into the general fund. That money was supposed to transfer to the Metropolitan Sewerage District under a state law passed last month that consolidates public utilities in Henderson and Buncombe counties. </p><p>But the city of Asheville has sued to block its implementation. While Henderson County is not a party to that lawsuit now, County Attorney Russ Burrell told commissioners "the state could choose to bring us in." Given the uncertainty, Brantley said county staff added the Cane Creek funds back into the general fund until the case is resolved.</p><p>Wyatt said the county is projecting revenues for fiscal year 2014-15, which begins July 1, 2014, at about $106 million, with $6.76 million left in reserves right now. Barring legislative changes, he said that will give commissioners roughly the same budget next fiscal year as this year, around $112 million.</p><p>"The plan, as you see, is doable," Wyatt said. "It will be tight. But for the next two years, we believe we can manage up until the point where you have your next reevaluation and then we'll have this conversation all over again based on new tax values."</p><p>Reach Axtell at 828-694-7860 or than.axtell@blueridgenow.com.</p>